ACEABLE AGENT REAL ESTATE PRINCIPLES
PRACTICE TEST 2026 QUESTIONS WITH
CORRECT ANSWERS
◉ PRINCIPAL. Answer: What is the term that describes the money
that is lent?
◉ CASH TO CLOSE. Answer: Down payment minus earnest money?
◉ TOTAL SALES PRICE. Answer: Loan payment + loan principal?
◉ ORIGINATION POINTS. Answer: Loan points/fees charged 1% to
compensate loan officers for underwriting and administering the
loan.
◉ DISCOUNT POINTS. Answer: Loan points/fees charged 1% in
exchange for a lower interest rate on the loan.
◉ DAY OF CLOSING. Answer: When is the seller responsible for
property taxes?
◉ Uniform Standards of Professional Appraisal Practice (USPAP).
Answer: Ethical code for appraisers?
,◉ Appraiser Qualifications Board (AQB). Answer: Who regulates
USPAP?
◉ TALCB. Answer: Texas Appraiser Licensing & Certification Board
acronym?
◉ LICENSED RESIDENTIAL APPRAISER. Answer: Qualified to
appraise:
-1 to 4 family non-complex residential units, <1 mill
-1 to 4 family residential complex unit, <$250k
-75 add'l education hours
-2000 hours experience over min 1 year
-Assoc Degree or 30 course credit hours
◉ CERTIFIED RESIDENTIAL APPRAISER. Answer: Qualified to
appraise:
-1 to 4 residential unit, any value okay
-125 add'l education hours
-2,500 hours experience over min 2 years
-Bach Degree or higher
◉ CERTIFIED GENERAL APPRAISER. Answer: Qualified to appraise:
,-any type of property
-225 add'l education hours
-Bach Degree
-3000 hours experience over min 2.5 years
-1/2 experience must be non residential
◉ PRINCIPLE OF SUBSTITUTION. Answer: The value of something is
affected by the cost of getting a similar item elsewhere. Similar
properties should have fairly similar values.
◉ PRINCIPLE OF CONFORMITY. Answer: Values are highest when
the houses in a neighborhood look roughly the same.
◉ PRINCIPLE OF CONTRIBUTION. Answer: A property's overall
value is made up of the combined value of each of its parts. The
value added by the improvement could be higher or lower than the
expense.
◉ PRINCIPLE OF CHANGE. Answer: The condition of a property, the
desirability of its location, and the market in which it exists can
always change. Appraisals are only good for one month.
◉ STEPS TO COMPLETE AN APPRAISEL. Answer: 1. state obj
2. list data
, 3. gather/record data
4. determine highest and best use
5. land value
6. estimate value using applicable approaches
7. final value estimate
8. complete and present report
◉ MINIMUM BID AUCTION. Answer: What is a "No-reserve" auction?
An auction which a minimum acceptable sales price (reserve) is set.
◉ 1. SALES COMPARISON APPROACH
2. THE COST APPROACH
3. THE INCOME APPROACH. Answer: What are 3 ways to calculate
value?
◉ COST APPROACH. Answer: Approach to calculate value based on
improvements, loss, comparable, by a) quantity survey method, b)
unit in place method, c) square foot method.
Property value = Cost of Reproduction - Depreciated Value + Land
Value
PRACTICE TEST 2026 QUESTIONS WITH
CORRECT ANSWERS
◉ PRINCIPAL. Answer: What is the term that describes the money
that is lent?
◉ CASH TO CLOSE. Answer: Down payment minus earnest money?
◉ TOTAL SALES PRICE. Answer: Loan payment + loan principal?
◉ ORIGINATION POINTS. Answer: Loan points/fees charged 1% to
compensate loan officers for underwriting and administering the
loan.
◉ DISCOUNT POINTS. Answer: Loan points/fees charged 1% in
exchange for a lower interest rate on the loan.
◉ DAY OF CLOSING. Answer: When is the seller responsible for
property taxes?
◉ Uniform Standards of Professional Appraisal Practice (USPAP).
Answer: Ethical code for appraisers?
,◉ Appraiser Qualifications Board (AQB). Answer: Who regulates
USPAP?
◉ TALCB. Answer: Texas Appraiser Licensing & Certification Board
acronym?
◉ LICENSED RESIDENTIAL APPRAISER. Answer: Qualified to
appraise:
-1 to 4 family non-complex residential units, <1 mill
-1 to 4 family residential complex unit, <$250k
-75 add'l education hours
-2000 hours experience over min 1 year
-Assoc Degree or 30 course credit hours
◉ CERTIFIED RESIDENTIAL APPRAISER. Answer: Qualified to
appraise:
-1 to 4 residential unit, any value okay
-125 add'l education hours
-2,500 hours experience over min 2 years
-Bach Degree or higher
◉ CERTIFIED GENERAL APPRAISER. Answer: Qualified to appraise:
,-any type of property
-225 add'l education hours
-Bach Degree
-3000 hours experience over min 2.5 years
-1/2 experience must be non residential
◉ PRINCIPLE OF SUBSTITUTION. Answer: The value of something is
affected by the cost of getting a similar item elsewhere. Similar
properties should have fairly similar values.
◉ PRINCIPLE OF CONFORMITY. Answer: Values are highest when
the houses in a neighborhood look roughly the same.
◉ PRINCIPLE OF CONTRIBUTION. Answer: A property's overall
value is made up of the combined value of each of its parts. The
value added by the improvement could be higher or lower than the
expense.
◉ PRINCIPLE OF CHANGE. Answer: The condition of a property, the
desirability of its location, and the market in which it exists can
always change. Appraisals are only good for one month.
◉ STEPS TO COMPLETE AN APPRAISEL. Answer: 1. state obj
2. list data
, 3. gather/record data
4. determine highest and best use
5. land value
6. estimate value using applicable approaches
7. final value estimate
8. complete and present report
◉ MINIMUM BID AUCTION. Answer: What is a "No-reserve" auction?
An auction which a minimum acceptable sales price (reserve) is set.
◉ 1. SALES COMPARISON APPROACH
2. THE COST APPROACH
3. THE INCOME APPROACH. Answer: What are 3 ways to calculate
value?
◉ COST APPROACH. Answer: Approach to calculate value based on
improvements, loss, comparable, by a) quantity survey method, b)
unit in place method, c) square foot method.
Property value = Cost of Reproduction - Depreciated Value + Land
Value
